Gall Manufacturing Sells a Product for $50 Per Unit

question 163

Multiple Choice

Gall Manufacturing sells a product for $50 per unit. The fixed costs are $840000 and the variable costs are 60% of the selling price. As a result of new automated equipment it is anticipated that fixed costs will increase by $200000 and variable costs will be 50% of the selling price. The new break-even point in units is:

• A) 42000.
• B) 41600.
• C) 41200.
• D) 33600.

Understand the historical and theoretical contributions to job and work design theories by key figures in the field.

Understand the principle of utility maximization for consumers.

Analyze the implications of marginal utility and pricing in consumer choice.

Apply the concept of the marginal utility-to-price ratio in maximizing utility.

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Definitions:

Saving Rate

The percentage of take-home pay that is set aside for savings instead of being used for consumer spending.

Economic Growth

A rise in the economy's inflation-adjusted value of produced goods and services over time.

Net Worth

Net Worth is the total value of an individual's or entity's assets minus liabilities, indicating financial health or wealth at a point in time.

Assets

Resources owned by a person or business that have economic value or expected future benefit.